ANCHORAGE, Alaska, Jan. 23, 2013 (GLOBE NEWSWIRE) -- Northrim BanCorp, Inc. (Nasdaq:NRIM) today reported 2012 net profits rose 14% to $12.9 million, or $1.97 per diluted share from $11.4 million, or $1.74 per diluted share in 2011. In the fourth quarter of 2012, Northrim earned $3.2 million, or $0.48 per diluted share, compared to $4.1 million, or $0.62 per diluted share in the preceding quarter and $3.3 million or $0.50 per diluted share in the fourth quarter a year ago. Third and fourth quarter 2012 earnings were positively impacted by net recoveries of previously charged-off loans totaling $1.4 million and $218,000, respectively, which led to negative provisions for loan losses for these periods.
"Our improving asset quality, coupled with a stable local economy and loan growth are supporting our profitability," said Marc Langland, Chairman, President and CEO of Northrim Bancorp. "We have the capacity and the liquidity to fund loan growth this year and are actively marketing loans to businesses in Alaska. The profitability of our franchise added $1.58 per share to tangible book value this year, bringing it to $19.67 per share at the end of the year. This 8.7% growth in tangible book value and our increasing cash dividends have allowed us to continue to provide increased value for our shareholders."
Financial Highlights (at or for the periods ended December 31, 2012, compared to September 30, 2012, and December 31, 2011)
- Diluted earnings per share increased 13% to $1.97 in 2012, compared to $1.74 per diluted share in 2011.
- Total revenues, which include net interest income plus other operating income, increased 4% to $57.7 million in 2012, compared to $55.5 million in 2011.
- Net interest income was $42.2 million in 2012, compared to $42.4 million in 2011. In the fourth quarter of 2012, net interest income was $10.8 million, compared to $10.6 million in the quarter ended September 30, 2012 and $10.8 million in the fourth quarter a year ago.
- Other operating income, which includes revenues from financial services affiliates, service charges, and electronic banking, contributed 28.7% to fourth quarter total revenues and 26.8% to full year 2012 total revenues, up from 26.5% in the fourth quarter and 23.6% of full year total revenues in 2011.
- Northrim paid a quarterly cash dividend of $0.15 per share in December 2012, up from $0.13 per share in December of 2011. The dividend provides a yield of approximately 2.6% at current market share prices.
- Tangible book value was $19.67 per share at December 31, 2012, an increase of 9% from $18.09 per share a year ago.
- Asset quality improved with nonperforming assets declining to $9.1 million, or 0.78% of total assets at December 31, 2012, compared to $10.7 million, or 0.94% of total assets at September 30, 2012 and $12.6 million, or 1.16% of total assets a year ago.
- The allowance for loan losses totaled 2.33% of gross loans at the end of 2012, compared to 2.46% at the end of the third quarter of 2012 and 2.56% a year ago. Northrim realized $1.5 million in net recoveries in 2012 reflecting collections on previously charged-off loans. As a result, Northrim recorded a negative loan loss provision of $1.6 million in 2012, compared to a loan loss provision of $2.0 million in 2011.
- In the third quarter of 2012, Northrim established a $349,000 reserve for its purchased receivables assets and added $8,000 to the reserve in the fourth quarter. The reserve was based on a five year average of historical losses on these accounts. Purchased receivables balances are listed on the balance sheet net of this reserve.
- Northrim remains well-capitalized with Tier 1 Capital to Risk Adjusted Assets at December 31, 2012, of 15.34%, compared to 15.36% at the end of the prior quarter and 15.20% a year ago. Tangible common equity to tangible assets was 11.12% at December 31, 2012, compared to 11.17% in the preceding quarter and 10.86% a year ago.
- In June 2012, Northrim was added to the U.S. Small-Cap Russell 2000 ® Index after the Russell Investment Group reconstituted its comprehensive set of U.S. and global equity indexes in June of 2012.